New York Times is Worth How Much?

The New York Times, which is really a national newspaper with a comparable circulation to USA Today, has been reported to have a remarkably low value, according to Business Week. How low did the New York Times go? On Wall Street, its trading value has plummeted to half of what it enjoyed from just a year ago to $12.48 per share. That means it only has a market cap of less than $1.8 billion.

Business Week states, to "put this in perspective, CBS recently acquired tech publisher CNET, a much weaker media brand, for $1.8 billion. Add in the company's $1.1 billion of debt, subtract $42 million for its cash on hand, and the company's total enterprise value—a valuation measure that totals up those items in such a fashion—is just $2.85 billion."

Newspapers are taking a beating every where. In 1993 the Boston Globe sold for over $1 billion. Last year it was being marketed for around half that ($500 to $600 million). Most newspapers have faced a crushing blow because of the Internet and the rise of the new media. The Wall Street Journal, which was sold by the Bancroft family to Rupert Murdoch's News Corp for $5 billion (roughly twice its value on the stock market) is a happy exception to what is going on in old media. The fact the Bancroft family -- which seemed very connected to its publication -- sold it at all, demonstrates how concerned they were about the future of their holding.

Increasingly newspapers are trying to make the shift to the web as their primary media vehicle. New York Times has even gone so far to say that it could be exclusively online in a few years. Unfortunately, many newer companies are well ahead of them in this game and brand loyalty simply isn't what it use to be. The only newspapers that have enjoyed an increase in advertising dollars in recent years are those that are free. Be the writing in the newspaper or on the Internet, the writing on the wall isn't very positive for many of the strongest names in print media.

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Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

The Screen People Will Watch in the Future is in Your Pocket

The "first screen" we have known and loved for decades has been the television. In recent years our passions have turned to our laptop and PC screen, but the screen of the future is going to have us squinting. At least those my age.

At a recent convention in San Francisco reported in CNET, Marketers discussed the various vehicles they are using to reach today's teens. The overwhelming vehicle choice is the mobile device. What does the future hold for mobile communications? "Mobile phones in the United States will surpass the popularity of desktops for teens. Only an estimated 20 percent of teens currently own a smartphone such as the iPhone, but mobile phone and content companies are counting on the idea that smartphone adoption will spread fast among teens in middle America and other areas."

In the future, there will be more and more ads being sent to mobile devices. This is because they can target the audicence better by interest, age, gender, and geography. Furthermore, text ads get noticed in a way web ads and (in particular) email spam never enjoys.

One definite piece of good news for fans of traditional media is that these devices will actually bolster the health of television, not undermine it. Devices will be able to use more video (20 percent of all young people already have smart telephones such as the iPhone, as stated above) and ads that would normally be on TV will also show up on the small screen.

The future of media looks very interesting and very small.

According to recent surveys on marketing, most advertising attracts sellers (others who want you to buy more ads) and not buyers. Do you want to know why? Email info@HoustonBusinessShow.com and put "marketing audio" in the subject line and we will get it to you.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.